Halfmoon, N.Y.-based DayStar Technologies (Nasdaq: DSTI) priced a 15 million share follow-on offering today at $4.25 per share.

The company, which is developing copper indium gallium selenide, or CIGS, thin film solar technology, said it plans to use the $63.8 million in proceeds to repay debt, to engineer to-scale and manufacture its deposition tool, and to construct a 25 megawatt production line in California.

DayStar said it expects to begin installation of the production line at the beginning of 2008, with commercial shipments beginning in 2009.

The company has already signed a deal with Germany's Blitzstrom, a thin film solar photovoltaic integrator, that commits Blitzstrom to purchase 50 percent of DayStar's production through 2011.

DayStar said the agreement is subject to its solar products meeting defined performance criteria.

The company is one of many working to be the first to get CIGS thin film solar products to market. Austin, Texas-based competitor HelioVolt recently raised $101 million for its first manufacturing plant (see HelioVolt boosts Series B to $101M).

ThinkEquity Partners is bookrunning lead manager for DayStar's offering, with Broadpoint Capital acting as co-manager. The underwriters have an over-allotment option for up to an additional 2.3 million shares.